Black Friday bargain hunters, prepare to be disappointed

The bargain bonanza that is Black Friday has begun. Only there are fewer sales this year, and those that are being advertised aren’t quite so eye-catching. Blame the global supply chain meltdown.

The bargain bonanza that is Black Friday has begun. Only there are fewer special offers this year, and those that are being advertised aren’t quite so eye-catching. You can blame the global supply chain meltdown for the dearth of doorbusters.

Even when toys and TVs start flowing through trade arteries again, retailers should maintain a more disciplined approach to discounting. This won’t be easy, but stores stand to gain a lot if they bin the bargains in Black Fridays to come.

This year, many Americans are still flush with lockdown savings, while wage gains are also boosting household spending power. Combine that with missing out on holiday festivities in 2020, and that’s made for buoyant consumer conditions — call it revenge Christmas if you like.

Given the higher costs that retailers are facing, from spiraling freight rates to air-shipping goods from Asia, they had little choice but to cut down on promotions this year in order to protect profit margins. In any case, why risk running out of stock when you don’t even need to stimulate demand? Walmart Inc. pointed to lower markdowns during the crucial back-to-school and Halloween seasons. Victoria’s Secret & Co., T.J. Maxx owner TJX Cos Inc. and Macy’s  Inc. also had to clear less stock. Adidas AG said it was selling more sneakers at full price this year compared with in 2020.  

Meanwhile, retailers such as Target Corp. and Amazon.com Inc. started their offers in October to capitalize on early consumer demand and having enough supply. That may have contributed to U.S. retail sales rising by the most in seven months in October. But that early holiday spending may take some heat out of the traditional late November frenzy.